DoD Awards $32M for Tower Repair to Harper Construction, Raising Value Concerns

Contract Overview

Contract Amount: $32,045,039 ($32.0M)

Contractor: Harper Construction Company, Inc.

Awarding Agency: Department of Defense

Start Date: 2023-06-22

End Date: 2025-05-12

Contract Duration: 690 days

Daily Burn Rate: $46.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: REPAIR TOWERS A, B, & C

Place of Performance

Location: LEMOORE, KINGS County, CALIFORNIA, 93246

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $32.0 million to HARPER CONSTRUCTION COMPANY, INC. for work described as: REPAIR TOWERS A, B, & C Key points: 1. Contract awarded to a single, large business, potentially limiting small business participation. 2. The contract's duration of 690 days for building construction may indicate complex work or potential delays. 3. The fixed-price contract type offers cost certainty but could lead to contractor profit if costs are lower than anticipated. 4. The award is for commercial and institutional building construction, a sector with varying cost benchmarks.

Value Assessment

Rating: questionable

The awarded amount of $32,045,038.51 for repairing three towers needs further comparison against similar construction projects. Without specific details on the scope of repairs, it's difficult to definitively assess if the price is competitive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the fact that Harper Construction Company, Inc. was the sole awardee warrants scrutiny to ensure the price discovery was robust.

Taxpayer Impact: The $32 million expenditure represents taxpayer funds allocated to infrastructure repair. Ensuring this investment yields maximum value and addresses critical needs is paramount for responsible fiscal management.

Public Impact

Military readiness may be impacted if tower repairs are critical for operational functions. Local economy in California could see a boost from construction jobs and related services. Taxpayers are funding essential infrastructure maintenance for the Department of the Navy.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of small business participation.
Potential for cost overruns if scope is underestimated.
Limited transparency on specific repair details.

Positive Signals

Awarded under full and open competition.
Fixed-price contract provides cost certainty.
Addresses critical infrastructure needs.

Sector Analysis

This contract falls under the Commercial and Institutional Building Construction sector. Spending benchmarks in this sector can vary widely based on project complexity, location, and specific materials used. The $32 million award suggests a significant undertaking.

Small Business Impact

The contract was awarded to Harper Construction Company, Inc., a large business, and the data indicates no small business set-aside. This suggests a missed opportunity to support small businesses in the construction sector.

Oversight & Accountability

The Department of the Navy, under the Department of Defense, is responsible for overseeing this contract. Standard oversight mechanisms for construction projects should be in place to monitor progress, quality, and adherence to the contract terms.

Related Government Programs

Commercial and Institutional Building Construction
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Potential for cost overruns due to fixed-price contract.
Lack of small business participation.
Limited detail on scope of work.
Long project duration (690 days).

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $32.0 million to HARPER CONSTRUCTION COMPANY, INC.. REPAIR TOWERS A, B, & C

Who is the contractor on this award?

The obligated recipient is HARPER CONSTRUCTION COMPANY, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $32.0 million.

What is the period of performance?

Start: 2023-06-22. End: 2025-05-12.

What specific repair work is included in the $32 million contract to justify the cost and duration?

The contract details are limited, but the scope likely includes structural repairs, system upgrades, or refurbishment of essential facilities within Towers A, B, and C. A comprehensive breakdown of the work, including materials, labor hours, and specialized services, is necessary to fully assess the value proposition and ensure the expenditure aligns with the actual needs of the Department of the Navy.

Are there any identified risks associated with Harper Construction Company, Inc. or the project's execution that could impact cost or timeline?

The provided data does not explicitly list risks associated with the contractor or project execution. However, any large-scale construction project carries inherent risks such as unforeseen site conditions, material price fluctuations, or labor shortages. Proactive risk management by the Department of the Navy and diligent oversight of Harper Construction are crucial to mitigate potential cost overruns and schedule delays.

How will the successful completion of these tower repairs contribute to the operational effectiveness of the Department of the Navy?

The repaired towers likely house critical functions, personnel, or equipment essential for the Department of the Navy's operations. Ensuring the structural integrity and functionality of these facilities through timely and effective repairs directly supports readiness, safety, and the overall mission capabilities of the naval forces stationed or operating from these locations.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR NONBUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N6247319R1237

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2241 KETTNER BLVD STE 300, SAN DIEGO, CA, 92101

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $32,045,039

Exercised Options: $32,045,039

Current Obligation: $32,045,039

Actual Outlays: $8,732,570

Subaward Activity

Number of Subawards: 23

Total Subaward Amount: $25,224,797

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6247321D1206

IDV Type: IDC

Timeline